Regional markets are continuing to outperform as city-dwellers turn to peri-urban areas and regional centres when looking to build a new home.
RPM Real Estate Group have sold a string of regional development sites since the start of the Covid-19 pandemic, with developers eager to secure sites to cater for this shift in buyer preferences.
RPM director, Christian Ranieri, said the demand for quality sites beyond Melbourne's fringes has escalated significantly during 2020.
“The industry, particularly local groups, have been quick to pivot their attention to centres like Geelong, Bendigo and Ballarat,” Ranieri said.
“In addition to this, peri-urban municipalities like the Macedon Ranges and Baw Baw Shire are drawing strong interest. These areas have clear planning parameters and allow an easy commute to Melbourne when required.”
Research conducted by RPM and by Research4 has highlighted the boom in land sales that these regional areas are experiencing. Ballarat saw growth of 80 per cent in the September quarter while the Geelong market grew by 64 per cent.
The biggest winner of all, however, was the Warragul-Drouin region, where land sales have jumped as much as 130 per cent.
RPM Real Estate Group are closing out 2020 with a major sales campaign which will capitalise on this growing demand for peri-urban land.
Located at 93 East-West Road, Warragul South, this 20.35-hectare development site has an approved PSP in place and concept plans for 160-plus residential lots.
Ranieri said the extended terms being offered by the vendors have seen the site draw a large amount of interest from buyers.
“It's rare these days to pick up a site on 8-10 year terms anywhere, let alone one with an approved PSP in place. It really is an excellent opportunity for someone to secure a premium site in one of the fastest growing shires outside of metropolitan Melbourne.”
“With the Casey and Cardinia corridors now recording median lot prices of $325,000 and $345,000 respectively, Warragul offers a compelling value proposition just a short drive up the freeway,” Ranieri said.
Between July and October, RPM's Transactions & Advisory division sold a strong of development sites in regional Victoria totalling in excess of $60 million.
These results, across the growth areas of Geelong, Ballarat and Bendigo, highlight the demand for regional land which has been further strengthened by the pandemic.
“Regional Victoria, particularly the areas closest to Melbourne, has always been undervalued. We're expecting strong price growth in some of these regions which will be accelerated by the 'work from home' culture that Covid-19 has brought forward” Ranieri said.
The Warragul South site is for sale by tender closing Thursday 3 December, 2020. The site is being marketed by RPM agents David Schnall and Zaynoun Melhem.
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